Prime Minister's Office
Text of PM’s address at The Economic Times – Global Business Summit
Shri Vineet Jain,
Distinguished Guests from India and abroad
A very good morning to all of you.
I am happy to be here once again with you at the Global Business Summit.
Let me first compliment you for choosing the word Social as the first word of your theme for a business summit;
I am also happy to note that the people present here are discussing thechallenge of how to make development sustainable, which happens to be the second word of your theme.
And when you talk about Scalability which is the third word of the theme for this summit, it gives me hope and confidence that you are indeed discussing solutions for India.
Friends.
Who would know better than all of you present here about the challenges the country was facing during the second half of 2013 and early 2014;
Run-away inflation was breaking the back of every house-hold.
Increasing current account deficit and higher fiscal deficit were threateningthe macro-economic stability of the country.
All these parameters were indicating a gloomy future;
The country was facing total policy paralysis.
This was preventing the economy from reaching the level which it was worthy of;
The global fraternity was worried about the health of this member of fragile five club.
There was a perception of surrender to existing circumstances
Friends.
It was in this background that our government came to serve the people and today change is clearly visible.
After 2014,hesitations have been replaced by hope.
Obstacles have been replaced by optimism.
And
Issues have been replaced by initiatives.
Since 2014,India has made significant improvements in almost all international rankings and indices.
This not only shows how India is changing but also represents how the world’s perception about India is changing.
I am aware that there are some who cannot appreciate this rapid improvement.
They suggest that rankings only improve things on paper, but nothing changes on the ground.
I think this is far from the truth.
Rankings are mostly lagging indicators.
Things change on ground first, but reflect in rankings after a time lag.
Take the example of Ease of Doing Business rankings.
Our rankings have improved from 142 to a historic high of 77 in four years.
But the change in rankings has been preceded by improvement in situation on the ground.
Now construction permits for starting a new business come faster, and sodo electricity connections and other approvals.
Even for the small traders, compliance is getting easier.
Now a business with a turn-over of upto Rupees forty lakh does not have to register for GST.
Now a business with a turn-over of upto Rupees sixty lakh does not have to pay any income tax.
Now a business with a turnover of upto Rupees 1.5 crore is eligible for the composition scheme with very nominal tax rate.
In the same way, India’s ranking in the World Travel and TourismCompetitiveness index has gone up from sixty five in 2013 to forty in 2017.
Number of Foreign Tourist Arrivals to India increased by around forty five percent, number of approved hotels went up by fifty percent and
foreign exchange earnings in tourism also went up by fifty percent between
2013 and 2017.
Similarly, India’s rank in Global Innovation Index has gone up from seventy six in 2014 to fifty seven in 2018.
This surge in innovation is clearly visible.
This improvement in culture is also visible.
The number of patents and trade-marks filed also show a great increase.
Friends.
The change is due to a new style of governance and is often visible in interesting ways.
I would like to give you such an interesting example of how things have changed since 2014.
We are now witnessing various forms of competition.
A competition between ministries,
a competition between states,
a competition on development,
a competition on achieving targets.
Today, there is a competition as to whether India will get 100% sanitation first or 100% electrification first.
There is competition as to whether all habitations will be connected by road first or all homes will get gas connection first.
There is competition as to which state will attract more investment.
There is competition as to which states will build houses for the poor fastest.
There is competition
as to which aspirational district will progress fastest.
Before 2014 also, we heard of about a competition, although of a different kind.
A competition between ministries,
a competition between individuals,
a competition on corruption,
a competition on delays.
There was competition on who can do maximum corruption,
there was competition on who can do fastest corruption,
there was competition on who can do most innovation in corruption.
There was competition as to whether coal will get more money or spectrum.
There was competition as to whether CWG would get more money or defence deals.
We all saw that and we also know who were the main players involved in this competition.
I will leave it to you to decide which form of competition you would prefer.
Friends.
For decades,a narrative was made that certain things are just impossible in India.
The progress our nation has achieved since 2014 gives me confidence that nothing is impossible for 130 crore Indians.
नामुमकिन अब मुमकिन है.
It was said that making a clean India was impossible, but people of India are making it possible.
It was said that a corruption free government in India was impossible, but people of India have made it possible.
It was said that it is impossible to remove corruption from the process of giving people their due, but people of India are making it possible.
It was said that it is impossible for the poor to leverage the power of technology, but the people of India are making it possible.
It was said that removing discretion and arbitrariness in policy making was impossible, but people of India are making it possible.
It was said that economic reforms in India were impossible, but people of India are making it possible.
It was said that governments cannot be pro-growth and pro-poor at the same time,but people of India are making it possible.
I have also been told, that there is a perception or theory that a developing economy cannot grow at higher rate for a longer period, without facing the problem of inflation;
Post liberalisation that is after 1991, almost all governments formed in our country had to face this problem – what many experts call “over-heating” of economy after a short period of growth.
As a result of this we never had sustainable higher rate of growth.
You may recall, that we had a government, between 1991 and 1996 where the average growth was about five percent, but the average inflation was more than ten percent;
The government just before us between 2009 to 2014 had an average growth of about six and half percent with an average inflation again in double digit;
Friends.
During 2014 to 2019, the country would register average growth of seven point four percent and the average inflation would be less than four and half percent;
Post liberalisation of Indian economy, this will be the highest rate of average growth and lowest rate of average inflation witnessed during the period of any government.
With these changes and reforms, transformation is happening in the way our economy has moved.
The Indian economy has expanded the bouquet of its financing resources.
It is no more dependent on banks credit for investment needs.
Take the example of fund raising from the capital market.
During 2011-12 to 2013-14, that is, three years prior to this government,
the average amount of fund raised through equity was about rupees fourteen thousand crore per annum.
In the last four years, this average is about rupees forty three thousand crore per annum.
This is almost three times.
The total amount raised by Alternative Investment Funds during 2011 to 2014 was less than rupees four thousand crore.
Our Government took various measures to develop this source of financing in the economy.
And, you can see the result
- from 2014 to 2018 in four years, the total amount raised by Alternative Investment Funds is more than rupees eighty one thousand crore.
This is a jump of the order of twenty times.
Similarly let us see the example of private placement of corporate bonds.
The average amount of fund raised through this during 2011 to 2014 was about rupees three lakh crore or about forty billion dollars.
Now the average over the last four years has gone up to rupees five point two five lakh crore or about seventy five billion dollars.
This is a jump of almost seventy five percent.
All these are examples of confidence shown in the Indian economy.
Today this confidence is shown not only by domestic investors, but also by investors from all across the world.
And the confidence shown in India continues, breaking the earlier trend of pre-election years.
In the last four years, the amount of Foreign Direct Investment received in the country was almost equal to what was received in seven years before 2014.
To achieve all this, India needed reforms to transform.
And by having the Bankruptcy Code, GST, Real Estate Act to name a few, – a solid foundation for decades of higher growth has been laid.
Four years ago, who would have believed that rupees three lakh crore or about forty billion dollars would be returned by defaulting borrowers to financial and operational creditors.
This is the impact of Bankruptcy and Insolvency Code.
This will help the country in allocating financial resources more efficiently.
While we attended to the plumbing work on economy which was notattended for so many years, we also decided not to put a caution board of “go slow, work in progress”.
All these reforms were implemented without halting work for the well-being of the larger sections of society.
Friends.
India is a country of 130 crore aspirations and there can never be a singular vision for development and progress.
Our vision of new India caters to all sections of the society, irrespective of their economic profile, their caste, creed, language and religion.
We are working hard to create a New India which fulfils the aspirations and dreams of 130 crore Indians.
Our vision of new India includes addressing the challenges of the future while also solving problems of the past.
So today, while India has made its fastest train, it has also eliminated all un-manned railway crossings.
Today, while India is buildingIITs & AIIMS at a rapid pace, it has also built toilets in all schools across the country.
Today, while India is building a 100 smart cities across the country, it is also ensuring rapid progress in over 100 aspirational districts.
Today, while India has become a net exporter of electricity, it has also ensured that crores of households which were in darkness since independence have got electricity.
Today, while India aims to land on Mars, it is also ensuring that every Indian has a roof over his head.
Today, while India is the fastest growing world economy, it is also removing poverty at the fastest speed.
Friends.
We have moved away from the A,B,C mentality – that is
“A” for avoiding,
“B” for burying and
“C” for confusing.
Instead of avoiding an issue, we dealt with the issue;
Instead of burying it, we dug it out and communicated to the people;
And
Instead of confusing the system, we demonstrated that a solution is possible.
This has given us the confidence to further upscale our positive interventions in the social sector.
We are reaching out to twelve crore small and marginal farmers by providing them a comfort of rupees six thousand every year. This will transfer 7.5 lakh crore rupees or about one hundred billion dollars to our farmers over the next ten years.
We are rolling out a pension scheme for crores of our informal sector workers.
The engine of growth for this government is running on two parallel tracks – one providing social infrastructure to all particularly for those who were left out;
and other providing physical infrastructure for all and particularly for generation next to shape their future as per their dreams.
What happened in the past is not in our hands, but what will happen in the future is firmly in our hands.
We often lament at missing the industrial revolutions in the past, but today it is a matter of pride that India is an active contributor to the fourth Industrial Revolution.
The extent and magnitude of our contribution will surprise the world.
I am also confident that India may have missed the bus during the first three industrial revolutions, but this time, it is a bus India has not only boarded but will also drive.
Innovation and Technology will form the bed-rock of this
resurgence.
The outcomes of our focus on Digital India, Start-up India, Make In India and Innovate India are converging and reaping rich dividends.
Do you know that while around four thousand patents were granted in 2013 and 2014, more than thirteen thousand patents were granted in 2017-18?
This is a three fold increase!
Similarly, do you know that the number of trade-marks registered has also gone up from around sixty eight thousand in 2013-14 to around two point five lakh in 2016-17.
This is almost a four fold increase!
You would be happy to know that today 44 percent of the startups registered in India are from tier 2 and tier3 cities?
A network of hundreds of Atal Tinkering Labs is coming up across the country and helping foster an atmosphere of innovation.
This will give a solid foundation for our students to help them become innovators of tomorrow.
I was impressed to see how a young girl from the snake charmer community was literally charming the mouse and making the most of digital India.
It is equally heartening to see how youth in villages are leveraging Wi-Fi and digital tools to help in clearing competitive exams.
It is technology which is bridging the gap between the haves and have-nots in our country.
Stories like these are writing a new chapter in the history of India.
Friends.
With the support and partnership of the people, India has made rapid strides since 2014.
This could not have been possible without Jan Bhagidaari.
It is this experience that gives us confidence that our country can provide adequate opportunities to all its citizens, to grow, prosper and excel.
We look forward to making India a ten trillion dollar economy,
We look forward to making India the third largest economy,
We want to make an India of countless startups,
We want to lead the global drive towards renewable sources of energy,
We want to give our people energy security
We want to cut down on import dependence;
We want to make India a world leader in electric vehicles and energy storage devices.
With these goals in mind, let us re-dedicate ourselves to create a New India of our dreams.
Thank You!
Thank You Very Much.